Caring for aging parents is getting more expensive

By Anna Claire Vollers, Stateline
October 28, 2026

Costs are soaring for people who care for their older parents and other family members, according to a new study.

Out-of-pocket expenses are nearly 60% higher than they were just five years ago for family caregivers, who now spend an average of $11,508 a year on caregiving, according to a report released this week by AARP, a nonprofit that advocates for people aged 50 and older.

“Whether they’re paying for groceries, housing or medical care, family caregivers are marking a significant financial commitment that can affect their own economic security,” said Debra Whitman, AARP executive vice president and chief public policy officer, in a statement.

Across the U.S., 63 million people care for family members, preparing meals, managing medications, attending medical appointments and performing other daily tasks for their loved ones. The report found a 50% increase in the number of adults providing such care over the past decade.

Family caregivers provide about $1 trillion in mostly unpaid labor each year, the AARP reports.

They also spend thousands out of their own pockets: That $11,508 in annual caregiving spending eats up 31% of the average household income.

And the burden is much heavier on low-income families. Caregivers with annual household incomes under $40,000 spend an average of 76% of their household income on caregiving, according to the report. At the other end of the economic spectrum, those with incomes above $85,000 a year spend between 9% and 19% on caregiving.

Most of those caregiving dollars go toward housing and medical care, the report found. More than a third of the money spent on medical care goes toward insurance premiums, copays and direct payments to providers.

Those caring for someone living with Alzheimer’s disease or another form of dementia spend more — an average of $15,846 annually.

Nearly two-thirds of working caregivers reported experiencing at least one work-related disruption because of caregiving, such as having to alter work hours or take time off for caregiving responsibilities.

Caregiving costs also vary depending on where a person lives. Caregivers who live in states such as New York, New Jersey and Pennsylvania spend the most, an average of $15,845 per year. That’s nearly twice what those who live in midwestern states such as Iowa, Kansas, Minnesota and Missouri, who spend $7,955.

The costs also vary by race and ethnicity. Asian American and Pacific Islander caregivers report the highest average spending at $16,716 (31% of average household income). Black caregivers spend an average of $13,565 annually – 52% of their household income, the highest percentage of any group.  Hispanic and Latino caregivers spend an average of $10,684 per year (29%), and white caregivers reported the lowest average spending, at $9,806 per year (24%).

The report’s authors recommend policy changes including tax credits, grants, paid leave for working caregivers, expanded home care options and help navigating the health care system.

Stateline reporter Anna Claire Vollers can be reached at avollers@stateline.org

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